BKT vs QQQ
BKT vs QQQ
BlackRock Income Trust Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | BKT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.75% | 0.18% | |
| AUM | $350M | $455.8B | |
| Dividend Yield | 9.60% | 0.41% | |
| Holdings | 336 | 108 | |
| YTD Return | -1.18% | +14.45% | |
| 1Y Return | -3.40% | +24.70% | |
| 3Y Return (annualized) | +4.00% | +24.19% | |
| 5Y Return (annualized) | -3.39% | +14.49% | |
| Volatility (annualized) | 9.2% | 30.6% | |
| Max Drawdown | -46.0% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 1, 1988 | Mar 10, 1999 |
BKT vs QQQ Performance
BlackRock Income Trust Inc (BKT) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BKT returned -3.40% while QQQ returned +24.70%. Year to date, BKT is down 1.18% versus a gain of 14.45% for QQQ.
Over three years, BKT compounded at +4.00% per year against +24.19% for QQQ; over five years the annualized figures are -3.39% and +14.49% respectively. Across the full 27-year window we track, QQQ has the edge at +12.98% annualized vs -0.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.2% for BKT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -46.0% for BKT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKT charges 2.75% per year while QQQ charges 0.18%. On a $10,000 position that is $275 vs $18 annually, a gap of $257 per year that compounds over a long holding period. On income, BKT currently yields 9.60% against 0.41% for QQQ.
Holdings Overlap
BKT and QQQ share 0 holdings out of 197 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BKT or QQQ?
BKT has an expense ratio of 2.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $257 per year of difference.
Which performed better, BKT or QQQ?
Over the past year BKT returned -3.40% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), BKT annualized -0.40% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, BKT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.2% for BKT. Worst drawdown: BKT -46.0% vs QQQ -83.0%.
Should I hold both BKT and QQQ?
BKT and QQQ have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKT and QQQ?
BKT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 197 unique securities.
Which pays a higher dividend, BKT or QQQ?
BKT yields 9.60% while QQQ yields 0.41%, so BKT currently pays the higher dividend yield.
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